This "AI Factory" Growth Stock Is Up 85% in 12 Months -- and It's Still Cheap

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However, most of its growth these days is coming from its artificial intelligence (AI) infrastructure business.In fact, Dell now refers to itself as an AI Factory, in partnership with Nvidia, that provides customers with AI systems and solutions. Dell makes the servers and hardware, while Nvidia offers the software and chips that are packaged for sale to hyperscalers, cloud providers, enterprises, and AI data center customers.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »Dell stock has been one of the clear-cut tech stock winners this year, up 35% year to date and roughly 85% over the past 12 months. Despite that strong share price growth, the stock is still sporting a cheap valuation. Is it worth a closer look?Image source: Getty Images.Dell has two major business lines. The first is its client solutions group (CSG), which is basically its PC business and all the products related to computers. This has been Dell's bread and butter for years, until recently.The other business is the infrastructure solutions group (ISG), which provides servers, networking equipment to sync and connect them with other infrastructure, and data storage. This business, in general, provides AI infrastructure and includes the AI Factory business.It has been growing by leaps and bounds, particularly over the past year or so. In the most recent quarter, ended Jan. 30, ISG generated $19.6 billion in revenue, up 73% year over year. Its AI-optimized servers saw revenue shoot 352% higher, while networking revenue soared 27%. Further, operating income in this segment rose 41% to $2.9 billion.Overall, Dell had record revenue in its fiscal fourth quarter and for the full fiscal year. It even had strong results in CSG, led by increased sales of its new AI PCs. The CSG side of the house saw revenue jump 16% year over year in fiscal Q4 to $11.6 billion, while operating income rose 14% to $13.5 billion.Even with the strong business and stock price growth this past year, the momentum is expected to carry into this fiscal year. Revenue is anticipated to rise 51%, while earnings are targeted for an 87% jump year over year in fiscal Q1. For the full fiscal year, Dell guides for a 103% year-over-year increase in AI-optimized servers. Revenue is targeted for a 23% increase, while earnings are projected to jump 33% for the full fiscal year.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersNKE NIKE, Inc. 46.07 -6.77 (-12.81%)COIN Coinbase Global, Inc. 176.34 +1.73 (+0.99%)TSLA Tesla, Inc. 376.27 +4.52 (+1.21%)BA The Boeing Company 204.18 +5.09 (+2.56%)CYCN Cyclerion Therapeutics, Inc. 5.87 +4.32 (+278.76%)PortfolioSign in to access your portfolioSign inTop gainersCNTA Centessa Pharmaceuticals plc 39.57 -0.16 (-0.39%)FLY Firefly Aerospace Inc. 28.93 +0.45 (+1.60%)HYMC Hycroft Mining Holding Corporation 35.66 +0.46 (+1.31%)MLYS Mineralys Therapeutics, Inc. 27.93 +0.84 (+3.10%)PRM Perimeter Solutions, Inc. 24.84 +0.42 (+1.70%)Top losersVG Venture Global, Inc. 15.14 -0.65 (-4.12%)CF CF Industries Holdings, Inc. 129.44 -0.39 (-0.30%)PBF PBF Energy Inc. 47.67 +0.08 (+0.17%)AMR Alpha Metallurgical Resources, Inc. 206.15 +0.94 (+0.46%)AR Antero Resources Corporation 42.49 +0.05 (+0.11%)Most activeNIO NIO Inc. 6.31 +0.28 (+4.73%)AAL American Airlines Group Inc. 10.88 +0.14 (+1.30%)GRAB Grab Holdings Limited 3.7350 +0.0750 (+2.05%)ONDS Ondas Inc. 9.28 +0.25 (+2.79%)NOK Nokia Oyj 8.12 +0.10 (+1.19%)Top economic eventsEarnings eventsMy earnings eventsEarnings events